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Quanta Services Inc (NYSE:PWR)
Beneish M-Score
-3.02 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Quanta Services Inc has a M-score of -3.02 suggests that the company is not a manipulator.

PWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33   Max: -0.61
Current: -3.02

-3.33
-0.61

During the past 13 years, the highest Beneish M-Score of Quanta Services Inc was -0.61. The lowest was -3.33. And the median was -2.49.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Quanta Services Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8769+0.528 * 1.1151+0.404 * 0.9483+0.892 * 1.0352+0.115 * 0.702
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9942+4.679 * -0.0569-0.327 * 1.6162
=-3.02

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,700 Mil.
Revenue was 1939.438 + 1872.34 + 1886.956 + 2131.635 = $7,830 Mil.
Gross Profit was 235.215 + 227.505 + 252.661 + 376.354 = $1,092 Mil.
Total Current Assets was $2,363 Mil.
Total Assets was $5,373 Mil.
Property, Plant and Equipment(Net PPE) was $1,126 Mil.
Depreciation, Depletion and Amortization(DDA) was $218 Mil.
Selling, General & Admin. Expense(SGA) was $667 Mil.
Total Current Liabilities was $1,341 Mil.
Long-Term Debt was $348 Mil.
Net Income was 216.388 + 46.109 + 53.484 + 66.576 = $383 Mil.
Non Operating Income was -1.07 + -0.448 + -0.212 + -0.467 = $-2 Mil.
Cash Flow from Operations was 110.209 + 117.556 + 189.227 + 273.301 = $690 Mil.
Accounts Receivable was $1,873 Mil.
Revenue was 2145.958 + 1838.209 + 1762.574 + 1817.623 = $7,564 Mil.
Gross Profit was 336.903 + 264.209 + 272.071 + 302.843 = $1,176 Mil.
Total Current Assets was $2,536 Mil.
Total Assets was $6,229 Mil.
Property, Plant and Equipment(Net PPE) was $1,388 Mil.
Depreciation, Depletion and Amortization(DDA) was $178 Mil.
Selling, General & Admin. Expense(SGA) was $648 Mil.
Total Current Liabilities was $1,128 Mil.
Long-Term Debt was $83 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1700.314 / 7830.369) / (1873.241 / 7564.364)
=0.21714353 / 0.24764025
=0.8769

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(227.505 / 7564.364) / (235.215 / 7830.369)
=0.15546925 / 0.13942319
=1.1151

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2362.664 + 1125.501) / 5373.424) / (1 - (2536.467 + 1388.134) / 6229.289)
=0.35084873 / 0.36997609
=0.9483

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7830.369 / 7564.364
=1.0352

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(178.255 / (178.255 + 1388.134)) / (217.763 / (217.763 + 1125.501))
=0.11379996 / 0.16211482
=0.702

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(667.293 / 7830.369) / (648.384 / 7564.364)
=0.08521859 / 0.0857156
=0.9942

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((348.209 + 1340.538) / 5373.424) / ((83.186 + 1128.127) / 6229.289)
=0.31427764 / 0.19445446
=1.6162

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(382.557 - -2.197 - 690.293) / 5373.424
=-0.0569

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Quanta Services Inc has a M-score of -3.02 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Quanta Services Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.09231.10051.0510.77640.9861.0181.08390.98010.98351.0464
GMI 0.80660.93270.91830.96120.9391.10121.21270.84560.97891.0299
AQI 0.92260.80662.01840.94380.94431.04110.99950.86741.06610.9193
SGI 1.13261.14511.2591.42330.87781.09381.15551.41171.10181.2037
DEPI 0.98661.01181.33160.83411.18470.9611.03630.98211.11011.02
SGAI 0.95940.85011.05260.90391.15040.90090.94970.91191.04561.1973
LVGI 0.97021.00220.58280.60650.93690.76261.4421.03121.05091.0641
TATA -0.0342-0.0295-0.0244-0.024-0.0523-0.0186-0.01810.0386-0.027-0.002
M-score -2.56-2.48-1.78-2.34-2.89-2.31-2.37-2.08-2.53-2.33

Quanta Services Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.90790.83190.98351.07871.09921.1011.04280.91570.89930.8769
GMI 0.89660.91310.97890.98571.03221.04811.02021.05771.06031.1151
AQI 0.8761.02231.06611.09241.08340.92240.91930.92071.09940.9483
SGI 1.2411.19671.10181.08461.12741.18591.20781.19451.13781.0352
DEPI 1.00711.03471.11011.08431.06281.04850.99990.96380.73420.702
SGAI 1.03881.03741.04561.14761.10211.15191.20051.05031.09410.9942
LVGI 0.91810.87851.05091.05221.06551.10751.06411.19131.38271.6162
TATA 0.019-0.0084-0.027-0.01210.00450.0073-0.002-0.0427-0.0625-0.0569
M-score -2.34-2.50-2.53-2.39-2.24-2.25-2.34-2.66-2.84-3.02
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